Employment in Singapore fell by 26,900 jobs in the third quarter, but the decline was much smaller than the 103,800 jobs lost in the second quarter, the Singapore Ministry of Manpower reported on Friday.

It noted that the number of non-residents employed fell in the third quarter, though employment among residents rose.

The sharpest employment cuts were in construction and manufacturing.

Singapore’s unemployment rate rose to 3.6% in September from 3.4% in August.

The unemployment rate for residents was 4.7% in September while the unemployment rate for citizens was 4.9%.

Retrenchments are expected to rise to 9,100 in the third quarter from 8,130 in the second.

The Ministry of Manpower noted that significant uncertainty remains over the length and severity of the Covid-19 pandemic. The Straits Times newspaper reported that while the third-quarter numbers were a bit of a relief, the job market is not out of the woods yet. “I think it would not be wise to take it as a given that (this rebound) will be sustained,” Manpower Minister Josephine Teo said, the newspaper reported.